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The effects of treating co-products as waste in input-output impact modelling

Author

Listed:
  • Koslowski, Maximilian
  • Hertwich, Edgar G.

Abstract

Constrained-optimisation techniques are frequently used in input-output impact modelling, usually applied to single-production data. When using joint-production data, one may observe even for a closed economy that more commodities are supplied than used. This begs the question of what should happen with such a commodity surplus as it does not evaporate into thin air. This is particularly interesting from an environmental perspective, since the surplus is an indication of the economy being inefficient. Here, we outline the difficulties of modelling excess commodities as waste, draw links from our proposed model to well-known models found in the literature, and describe what the influence of accounting for secondary products differently would be in terms of modelling outcomes.

Suggested Citation

  • Koslowski, Maximilian & Hertwich, Edgar G., 2026. "The effects of treating co-products as waste in input-output impact modelling," MPRA Paper 129333, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:129333
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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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